libstar holdings limited (incorporated in the republic of south africa… · 2019. 9. 4. ·...

Libstar Holdings Limited(Incorporated in the Republic of South Africa)(Registration number 2014/032444/06)(JSE share code: LBR)(ISIN: ZAE000250239)("Libstar" or the "company" or the "group")

Reviewed Interim Results Six Months ended 30 June 2019

Salient Features

Against the backdrop of a weak retail and consumer environment, Libstar delivered a resilient performance. The key contributors were the group's core categories of Perishables, Ambient Groceries, Snacks and Confectionery and Baking and Baking Aids.

The Group uses normalised EBITDA, normalised EPS and normalised HEPS, which exclude non-recurring, non-trading & non-cash items, as key measures to indicate its true operating performance:

Normalised EBITDA increased by 5.9%Normalised EPS increased by 13.2%Normalised HEPS increased by 12.4%

Rm H1 2019 % change H1 2018

Revenue 4 617 +4.6% 4 415Gross Profit margin 23.2% 20.9%Normalised operating profit 339 +5.0% 323(margin) 7.3% 7.3%Normalised EBITDA 425 +5.9% 401(margin) 9.2% 9.1%Normalised EPS (cents) 30.9 +13.2% 27.3Normalised HEPS (cents) 30.9 +12.4% 27.5Reported total basic and diluted EPS (cents)* 8.7 -28.7% 12.2Reported total basic and diluted HEPS (cents)** 18.6 +50.0% 12.4

* Mainly due to the exit and R59.4 million impairment of the non-core dairy blend and fruit concentrate business held-for-sale** Mainly due to the significant reduction in net interest expense

About Libstar

Libstar is a leading producer and supplier of high-quality products in the consumer packaged goods ("CPG") industry. It markets a wide range of products in South Africa and globally. The Group provides a multi-product offering in several categories across a range of channels. Libstar is strategically positioned within the food and beverage and household and personal care ("HPC") sectors to maintain the flexibility to capitalise on growth areas in the CPG industry.

Group Trading and Financial Performance

To facilitate comparison with the operating performance of the Group for H1 2018 ('the comparative period'), H1 2019 numbers in the commentary section of this announcement have been presented on a like-for-like basis, which excludes the impact of the first-time adoption of IFRS 9 (hedge accounting) and IFRS 16 (leases), unless otherwise indicated.

As indicated at year-end, the Group has structured its businesses around core and non-core categories. The core categories include Perishables, Ambient Groceries, Snacks and Confectionery and Baking and Baking Aids whilst the non-core categories are Household and Personal Care, Niche Beverages and Specialised Food Packaging. The dairy blend and fruit concentrate business of Elvin, in the non-core category, is currently held for sale and the comparative period has been restated to reflect this.

Revenue

Group revenue for the period was up 4.6%. Organic revenue growth from our core categories, which constitute 88% of the Group's revenue base, was 5.3%. This was mainly as a result of increased volume sales of baked goods, as well as a significant increase in dry condiment exports.

Revenue from non-core categories, which represent 12% of revenue, declined by 1.5%. Despite the improvement in sales mix, significant volume declines in the outsourced and export markets impacted the results.

Gross profit margins

Gross profit margins for the Group improved from 20.9% to 23.2%, mainly as a result of favourable changes in the sales mix of value-added dairy products and lower input costs of dry condiments. The Group's continued focus on procurement practices and production efficiencies, is also reflected in the improved gross profit margin.

Operating profit and EBITDA

Normalised operating profit increased by 5.0%, with margins remaining constant at 7.3%.

Group normalised EBITDA increased by 5.9% and normalised EBITDA margins remained constant (9.1% in H1 2018 vs 9.2% in H1 2019). Normalised EBITDA from the Group's core categories increased by 8.5%, contributing 95.5% of Group EBITDA. The remaining 4.5% of normalised EBITDA was contributed by the non-core categories and showed a decline of 17.6% on the comparative period.

Net interest expenses

The Group's net interest expense declined by 40.7% to R78.3 million. This is due to the R700 million reduction in net debt levels after Libstar's JSE listing in May 2018 and the November 2018 renegotiation of Group debt facilities on more favourable terms.

Earnings and headline earnings

Normalised earnings increased by 29.8% to R185.4 million (30.9 cents per share), mainly as a result of a significant reduction in the group's net interest expense.

Normalised headline earnings increased by 28.7% to R185.2 million.

Cash flows and working capital

Cash generated from operating activities increased by 49.3% to R120 million, largely as a result of the reduced net interest expense. Net working capital as a percentage of revenue (13.8%) remains within the group's target of 13-15%. The Group continues to invest in capacity-enhancing projects in identified growth areas, with capital expenditure of R162 million (H1 2018: R152 million), representing 3.5% of net revenue. This was slightly above the Group's normal range of 2.5-3.0% and included R43 million in plant upgrades at Lancewood and R23 million in respect of the new par-bake frozen facility at Amaro Foods.

Other material cash outflows during the six months under review include the settlement of the Group's annual dividend of R132 million, declared on 13 March 2019, and the repurchase of shares of R92 million.

Category Results

Revenue

6 months ended

30 June 2019

R'000

6 months ended

30 June2018

R'000 Change

%

Perishables 2 205 332 2 172 598 1,5Ambient Groceries 1 311 823 1 218 946 7,6Snacks and Confectionery 239 167 212 322 12,6Baking and Baking Aids 313 925 255 766 22,7Niche Beverages 53 509 71 112 (24,8)Household and Personal Care 373 076 377 519 (1,2)Specialised Food Packaging 120 044 106 537 12,7

Normalised EBITDA

6 months ended

30 June 2019

R'000

6 months ended

30 June2018

R'000 Change

%

Perishables 200 717 189 388 6,0Ambient Groceries 178 923 157 633 13,5Snacks and Confectionery 35 917 34 977 2,7Baking and Baking Aids 41 859 39 758 5,3Niche Beverages 1 232 6 047 (79,6)Household and Personal Care 16 803 15 922 5,5Specialised Food Packaging 3 467 4 139 (16,2)

Core Categories

A pleasing performance was achieved by all of the core categories. A favourable change in the sales mix of dairy products and lower dry condiment input costs resulted in an improvement in core category gross profit margins from 21.5% to 23.9%. Normalised operating profit margins increased from 9.2% to 9.4% and normalised EBITDA margins increased from 10.9% to 11.2%.

Perishables

48% of group revenue42% of group normalised EBITDA

Revenue from Perishables, the group's single largest contributor to revenue and profit, increased 1.5%. A 3.2% decline in volumes was more than compensated for by a 4.7% positive price/mix change. The decline in volumes was mainly as a result of significantly lower sales of value-added chicken products due to lower demand from customers in the food service channel. Fresh mushrooms delivered positive volume and price growth off the low H1 2018 base.

A significant improvement in the sales mix of dairy products following the launch of a range of eating yoghurts in Q3 2018 was the main contributor to the improvement in category gross profit margins from 17.9% to 20.9% and also contributed to the increase in normalised operating profit and normalised EBITDA which grew by 2.4% and 6.0% respectively.

The normalised EBITDA margin for the category improved from 8.7% to 9.1%.

Ambient Groceries


Revenue from Ambient Groceries, the group's second largest contributor to revenue and profit, was buoyed by strong double-digit revenue growth in local market private label spices and seasonings and a significant recovery in dry condiment export markets.

Wet condiment sales improved following the consolidation of the Montagu and Denny wet condiment manufacturing facilities in the prior year and improved sales from Dickon Hall Foods following the strike in H1 2018. Plant integration costs at Montagu and a lower demand from customers within the outsourced manufacturing channel at Dickon Hall Foods, however negatively impacted on the category EBITDA performance.

Khoisan Gourmet, the Group's main contributor to the tea sub-category, was transferred from Niche Beverages to the Ambient Groceries category to better align the disclosure of the segment.

The Ambient Groceries category gross profit margin improved from 25.7% to 28.6%, mainly as a result of lower dry condiment input prices.

Normalised operating profit and normalised EBITDA increased by 16.9% and 13.5% to R156 million and R179 million respectively, whilst normalised EBITDA margins improved from 12.9% to 13.6%.

Snacks and Confectionery


Revenue from the Snacks and Confectionery category grew 12.6% to R239 million. The new Pringle potato snack facility was commissioned during June 2019 and is expected to contribute to a stronger H2 normalised EBITDA performance within the category.

Gross profit margins in the category declined from 26.1% in the prior period to 24.8%, largely due to increased promotional activity in nut tubs and peanut snacks.

Normalised operating profit declined by 2.9% to R29 million, while normalised EBITDA increased 2.7% to R36 million. The planned snack bar launch in September 2019 is expected to bolster H2 normalised EBITDA performance.

Baking and Baking Aids


Revenue from Baking and Baking Aids increased by 22.7% to R314 million as a result of strong double-digit volume growth from the sales of rolls, buns, flat breads and wraps due to increased innovation in the category. This was slightly offset by lower private label revenue from soups and jellies within the Baking Aids sub-category.

An adverse change in the baked goods sales mix resulted in a decline of the category gross profit margin from 27.6% to 24.2%.

Normalised operating profit and normalised EBITDA increased by 0.9% and 5.3% to R31 million and R42 million respectively.

Non-Core Categories

The performance from the group's non-core categories was disappointing. Normalised operating profit declined by 19.5% to R12 million, mainly due to a weaker performance in Niche Beverages (off a high H1 2018 base). Normalised EBITDA declined by 17.6% to R22 million.

Niche Beverages


During H1 2019, the group entered into a binding sales agreement to exit the non-core dairy-blend and fruit concentrate beverage operations. This agreement is subject to customary conditions precedent, including approval by The Competition Commission of South Africa. The transaction is not categorised in terms of the JSE Listings Requirements. On classification of this operation as held for sale, a pre-tax impairment loss of R73.0 million (R59.4 million post-tax) was recognised mainly in respect of the brands and goodwill attributable to the asset to align the carrying value of the assets held for sale to the purchase consideration in accordance with the transaction.

Revenue from the remaining Niche Beverages businesses, which comprise Chamonix Springwater and the non-beverage Elvin operations (which will in future be reported under the Ambient Groceries category following the operational integration with the group's wet condiment facilities) declined by 24.8%. This was mainly due to a decline in water sales compared to the high base set in the prior period as a result of the drought experienced in the Western Cape.

Normalised operating profit and normalised EBITDA for the period were breakeven and R1 million respectively compared to respective profits of R5 million and R6 million.

Household and Personal Care


Revenue from Household and Personal Care products decreased by 1.2% to R373 million. Gross profit margins improved from 15.9% to 18.1% due to an improved sales mix, resulting in a R3 million (38.6%) increase in normalised operating profit and a R1 million (5.5%) increase in normalised EBITDA to R10 million and R17 million respectively.

An operational amalgamation of the businesses within the HPC cluster will be implemented during H2 2019. This is expected to yield further cost rationalisation benefits and improve the group's sales, marketing, distribution and logistics capabilities within the category.

Specialised Food Packaging


Revenue from Specialised Food Packaging increased 12.7% to R120 million. Although gross profit margins were maintained at 22.9% compared to 23.0% in H1 2018, normalised operating profit and normalised EBITDA decreased R0.9 million and R0.7 million respectively due to increased operating costs.

Outlook

Revenue from dealer-own brands and private label contributed 46% of Libstar's Group gross revenue during H1 2019, up from 45% in the comparative period as revenue from private label products within the broader South African market continues to outstrip the growth in named brands.

Libstar is well positioned through its ability to innovate and differentiate products and its ability to develop category plans for retail customers. The Group should therefore continue to grow its share of the relevant markets by its dealer-own brand and private label offerings.

Innovation, as a means of growth, remains a core pillar of organic growth for Libstar, with over 350 new or renovated products launched during H1 2019.

During H2 2019, Libstar will continue its efforts to:

- develop categories and channels especially within the food service, retail, wholesale, independent and export channels;- standardise IT platforms, invest in logistics tracking and improve its overall manufacturing efficiency measures; - reduce operating costs through improved productivity, target costing and product re-engineering, and- invest in new technologies and capacity-expanding projects within core categories, with a further R57 million, R26 million and R15 million earmarked for planned upgrades at Lancewood, Millennium Foods and Ambassador Foods respectively.

In H1 2019, Libstar recorded the benefits from capex projects completed in 2018, namely the new granola plant, the health bar capacity expansion (with additional expansion to come through in the current year) and the new meat slicing plant. Benefits have not yet flowed from the new chicken plant with new markets being developed both locally and in the export markets. The Montagu/Denny Foods integration was slow to come online with several equipment problems and has only settled down in early H2 2019.

H2 2019 is expected to reflect the benefits from the commissioning of the par-bake frozen plant (late May) and the Pringles manufacturing plant (June). Furthermore, the local production of Kiri and Laughing Cow soft cheese is expected to commence in Q4 2019.

Libstar's approximate 40:60 H1:H2 normalised EBITDA ratio is expected to remain largely intact although aggressive competitor discounting and constrained demand within the markets in which the Group operates, is expected to continue during H2 2019.

Shareholder Update

Shareholders are referred to an Actis media release dated 15 July 2019 wherein Actis advised that it has assumed management rights on Abraaj Private Equity Fund IV (APEF IV), a global buyout fund, and Abraaj Africa Fund III (AAF III), a fund for investment in sub-Saharan Africa.

Libstar is a portfolio investment of APEF Pacific Mauritius Ltd (APEF Mauritius) which in turn is a portfolio investment of, inter alia, APEF IV and AAF III. APEF Mauritius holds 252,463,077 Libstar shares or 37.02% of the total voting rights of the company.

Actis is a leading investor in growth markets across Africa, Asia and Latin America. Founded in 2004, Actis has raised US$15bn since inception and employs over 200 people, including a team of c.120 investment professionals, working across 16 offices globally.

Dividend

In line with Group policy, the Board will assess the declaration of a dividend once per annum, at publication of final results once full-year trading is concluded.

Changes To The Board And Committee Compositions

In light of the change in the management rights of the Abraaj shareholding as outlined above, Mr Wahid Hamid, who represented Abraaj on the Libstar board, has resigned as anon-executive director of Libstar Holdings Limited, chairman of the Remuneration Committee and member of the Investment Committee with effect from 12 August 2019. The Board wishes to thank Mr Hamid for his contributions to Libstar and wishes him well in his future endeavours. In accordance with its mandate, the Board has appointed Mr Sandeep Khanna as chairman of the Remuneration Committee and Mr JP Landman as a member of the Remuneration Committee with effect from 03 September 2019.

The Nominations committee will continue its assessment of the structure and composition of the Board and its committees.

By order of the Board

Johannesburg03 September 2019

WYN LuhabeChairman

AV van RensburgChief Executive Officer

RW SmithFinancial and Commercial Director

SENS release

The announcement was released on the JSE’s Stock Exchange News Service (SENS) on 04 September 2019 and can be found on the company’s website at www.libstar.co.za or at https://senspdf.jse.co.za/documents/2019/jse/isse/lbre/LBRH119.pdf.

The full announcement is available for inspection at the Company’s registered office and copies may also be requested at the company’s registered office and at the offices of the sponsor, at no charge, during office hours.

Pro Forma Financial Information

As the half-year comparative period normalised earnings and normalised headline earnings have not been previously reported, this information constitutes pro-forma financial information in terms of the JSE Listings Requirements. The pro forma financial information presented in this announcement, which is the responsibility of the group's directors, has been prepared for illustrative purposes only, and may not fairly present the group's financial position, changes in equity, results of operations or cash flows.

Forward-Looking Statements

Any forward-looking statements included in this results announcement involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the group to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Any reference to forward-looking information included in this results announcement does not constitute an earnings forecast and has not been reviewed or reported on by the Group's external auditors.

Condensed Consolidated Statement of Comprehensive Income

Notes

6 monthsended

30 June2019

ReviewedR'000

6 monthsended

30 June2018(1)

ReviewedR'000

Year ended31 December

2018(1)

AuditedR'000

CONTINUING OPERATIONSRevenue 4 616 876 4 414 800 9 659 597Cost of sales (3 544 339) (3 490 711) (7 493 654)

Gross profit 1 072 537 924 089 2 165 943Other income 5 14 255 6 629 17 995Operating expenses 6 (816 224) (701 758) (1 562 419)

Operating profit 270 568 228 960 621 519Investment income 25 219 21 027 47 617Finance costs (128 158) (153 052) (269 310)

Profit before tax 167 629 96 935 399 826Income tax expense (48 985) (24 883) (125 907)

Profit for the period from continuing operations 118 644 72 052 273 919

DISCONTINUED OPERATIONSLoss for the period from discontinued operations and operations held for sale 7 (65 807) (9 760) (50 906)

Profit for the period 52 837 62 292 223 013

Other comprehensive income for the period, net of tax 8 752 (247) (417)

Defined benefit plan actuarial losses - (247) (417)Gains on hedging reserves 8 752 - -

Total comprehensive profit for the period 61 589 62 045 222 596

Profit/(loss) attributable to:Equity holders of the parent 52 232 63 820 222 224Non-controlling interest 605 (1 528) 789

52 837 62 292 223 013

Total comprehensive income/(loss) attributable to:Equity holders of the parent 60 984 63 573 221 807Non-controlling interest 605 (1 528) 789

61 589 62 045 222 596

Basic and diluted earnings per share (cents)

From continuing operations 8 19,7 14,1 48,2From continuing and discontinued operations 8 8,7 12,2 39,2

Headline earnings per share (cents)

From continuing operations 8 19,7 14,3 48,7From continuing and discontinued operations 8 18,6 12,4 45,9

1. The comparatives have been restated to reflect dairy blend and fruit concentrate operations as a discontinued operation.

Condensed Consolidated Statement of Financial Position

Notes

At 30 June2019

ReviewedR'000

At 30 June2018

ReviewedR'000

At31 December

2018

AuditedR'000

ASSETSNon-current assets 6 388 407 6 031 717 6 009 716

Property, plant and equipment 1 263 716 1 103 649 1 205 921Lease asset 10 464 430 - -Goodwill 2 496 058 2 521 058 2 521 058Intangible assets 2 144 357 2 376 992 2 269 199Other financial assets 6 608 8 860 8 018Operating lease asset - 4 248 5 418Deferred tax assets 13 238 16 910 102

Current assets 3 764 554 3 667 931 3 784 159

Inventories 1 192 812 1 188 231 1 121 330Trade and other receivables 1 557 825 1 482 091 1 628 038Biological assets 27 635 26 990 26 662Other financial assets 30 268 24 562 17 921Current tax receivable 29 738 61 031 2 796Cash and bank balances 926 276 885 026 987 412

Assets classified as held for sale 36 444 21 834 -

Total assets 10 189 405 9 721 482 9 793 875

EQUITY AND LIABILITIESCapital and reserves attributable toequity holders of the parent 5 197 244 5 260 384 5 410 079

Share capital 4 727 314 4 829 235 4 818 884Defined benefit plan reserve (1 757) (1 587) (1 757)Retained earnings 538 103 509 716 668 120Premium on acquisition of non-controlling interests (75 168) (67 484) (75 168)Hedging reserves 8 752 - -Put options exercisable by non-controlling interests and executive management - (9 496) -

Non-controlling interests 9 266 10 028 8 661

Total equity 5 206 510 5 270 412 5 418 740Non-current liabilities 3 178 001 2 439 078 2 722 450

Other financial liabilities 1 923 382 1 604 677 1 921 591Lease liability 10 515 903 - -Deferred tax liabilities 725 185 805 761 769 960Employee benefits 5 565 8 197 8 919Share appreciation rights 7 966 12 342 8 860Operating lease liability - 8 101 13 120

Current liabilities 1 803 600 2 001 834 1 652 685

Trade and other payables 1 324 561 1 388 058 1 401 337Other financial liabilities 120 980 372 077 77 086Lease liability 10 38 977 - -Current tax payable - 3 442 4 239Share appreciation rights 3 123 - 11 951Bank overdraft 315 959 238 257 158 072

Liabilities directly associated with assetsclassified as held for sale 1 294 10 158 -

Total liabilities 4 982 895 4 451 070 4 375 135

Total equity and liabilities 10 189 405 9 721 482 9 793 875

Condensed Consolidated Statement of Changes in Equity

SharecapitalR'000

Definedbenefit plan

reserve(1)R'000

Premium on acquisition

of non-controlling

interests(2)R'000

Retained earnings

R'000

Put options exercisable by

non-controlling interests and

executivemanagement(3)

R'000

Hedgingreserves(4)

R'000

Non-controlling

interestsR'000

TotalR'000

Balance at 01 January 2018 4 187 177 (1 340) (63 624) 445 896 (8 836) - 7 696 4 566 969Total comprehensive income for the period - (247) - 63 820 - (1 528) 62 045

Profit or loss for the period - - - 63 820 - - (1 528) 62 292Other comprehensive income for the period - (247) - - - - - (247)

Transactions with owners of the CompanyContributions and distributions 642 058 - - - - - - 642 058

Capital distribution (800 000) - - - - - - (800 000)Issue of shares 1 500 730 - - - - - - 1 500 730Held as treasury shares (730) - - - - - - (730)Capitalisation of costs directly attributable to issue of shares (57 942) - - - - - - (57 942)

Changes in ownership interests - - (3 860) - - - 3 860 -

Purchase of non-controlling interest in subsidiary - - (3 860) - - - 3 860 -

Movement in put options - - - - (660) - - (660)

Fair value adjustment through equity - - - - (660) - - (660)

Balance at 30 June 2018 4 829 235 (1 587) (67 484) 509 716 (9 496) - 10 028 5 270 412

Total comprehensive income for the period - (170) - 158 404 - - 2 317 160 551

Profit or loss for the period - (170) - 158 404 - - 2 317 160 551

Transactions with owners of the CompanyContributions and distributions (10 351) - - - - - - (10 351)

Share buy back (7 964) - - - - - - (7 964)Capitalisation of costs directly attributable to issue of shares (2 387) - - - - - - (2 387)

Changes in ownership interests - - (7 684) - - - (3 684) (11 368)

Purchase of non-controlling interest in subsidiary - - (7 684) - - - (3 684) (11 368)

Movement in put options - - - - 9 496 - - 9 496

Fair value adjustment through equity - - - - 9 496 - - 9 496

Balance at 31 December 2018 4 818 884 (1 757) (75 168) 668 120 - - 8 661 5 418 740

Total comprehensive income for the period - - - 52 232 - 8 752 605 61 589

Profit or loss for the period - - - 52 232 - - 605 52 837Other comprehensive income for the period - - - - - 8 752 - 8 752

Transactions with owners of the CompanyContributions and distributions (91 570) - - (131 689) - - - (223 259)

Share buy back (91 570) - - - - - - (91 570)Dividends paid - - - (131 689) - - - (131 689)

Adoption of new accounting standard - - - (50 560) - - - (50 560)

IFRS 16 adoption - - - (50 560) - - - (50 560)

Balance at 30 June 2019 4 727 314 (1 757) (75 168) 538 103 - 8 752 9 266 5 206 510

Notes1. Defined benefit plan reserve: Reserves comprises actuarial gains or losses in respect of defined benefit obligations that are recognised in other comprehensive income.2. Premium on non-controlling interests: Represents the difference between the carrying amount of the non-controlling interests and the fair value of the consideration given on acquisition of non-controlling interests.3. Put options exercisable by non-controlling interest and executive management relates to the liability raised in respect of put options exercisable by non-controlling interests and executive management.4. Hedging reserves: Represents the gains relating to foreign currency transactions recognised in other comprehensive income.

Condensed Consolidated Statement of Cash Flows

Notes

6 monthsended

30 June2019

ReviewedR'000

6 monthsended

30 June2018

ReviewedR'000

Year ended31 December

2018

AuditedR'000

NET CASH FLOW FROM OPERATING ACTIVITIES 119 617 80 104 505 044

Cash generated from continuing operations 12 310 169 311 833 876 187 Investment income received 25 219 21 027 47 617 Finance costs paid (103 557) (153 052) (269 310) Taxation paid (107 951) (91 646) (139 341) Cash utilised by discontinued operations (4 263) (8 058) (10 109)

NET CASH FLOW FROM INVESTMENT ACTIVITIES (160 304) (150 845) (345 979)

Purchase of property, plant and equipment and computer software (161 525) (151 582) (348 745) Sale of property, plant and equipment and computer software - 737 3 505 Other financial assets (repaid)/advanced 1 221 - (1 739) Proceeds from sale of discontinued operations - - 1 000

NET CASH FLOW FROM FINANCING ACTIVITIES (178 336) 362 533 318 948

Proceeds from issue of equity shares - 1 500 000 1 500 000 Capital distribution - (800 000) (800 000) Dividends paid (131 689) - - Share issue costs - (5 483) (60 329) Share buyback (91 570) - (7 964) Loans repaid to shareholders - (19 384) (17 267) Loans repaid by shareholders - 41 767 39 648 Repayments of other financial liabilities (1 047) (35 040) (34 462) Repayment of loans from non controlling interests - (28 880) (28 592) Purchase of non-controlling interests - - (11 368) Proceeds from term loans and asset based financing 86 094 846 206 2 584 364 Repayment of term loans and asset based financing (40 124) (1 136 653) (2 845 082)

Net (decrease)/increase in cash and cash equivalents (219 023) 291 792 478 013 Cash and cash equivalents at the beginning of the period 829 340 351 327 351 327

Cash and cash equivalents at the end of the period 610 317 643 119 829 340

Continuing operations 610 317 646 769 829 340

Discontinued operations - (3 650) -

Condensed Consolidated Segmental Information

BASIS OF SEGMENTATION

The executive management team of the Group has chosen to organise the Group into categories and manage the operations in that manner. The information reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance is based on seven categories.

The following summary describes each segment:

PerishablesPerishable products are products that are likely to decay or spoil within a short period of time.

Ambient GroceriesAmbient groceries (also known as "shelf-stable" groceries) is a category of foods that can be stored and preserved at room temperature.

Snacks and ConfectioneryPremium snacks and confectionery products.

Baking and Baking AidsBaked goods, specialised gluten free offering and baking aids.

Niche BeveragesThe niche beverages product category consists of beverages that do not fall within the mainstream beverage market.

Household and Personal CareDetergents and household cleaning products.

Specialised Food PackagingThe specialised food packaging product category is made up of custom-made packaging solutions for various food and drink products sold largely in the food services industry.

Reclassifications between segments

During the period under review, management reclassified the tea operations of Khoisan Gourmet from the niche beverages segment to the ambient groceries segment. This aligns the financial disclosure to the manner in which the tea category is managed.

6 months ended

30 June 2019

ReviewedR'000

6 monthsended

30 June2018*

ReviewedR'000

Change%

Year ended 31 December

2018*

AuditedR'000

INFORMATION ABOUT REPORTABLE SEGMENTSRevenuePerishables 2 205 332 2 172 598 1,5 4 569 592Ambient Groceries* 1 311 823 1 218 946 7,6 2 751 397Snacks and Confectionery 239 167 212 322 12,6 477 391Baking and Baking Aids 313 925 255 766 22,7 627 839Niche Beverages* 53 509 71 112 (24,8) 138 156Household and Personal Care 373 076 377 519 (1,2) 846 313Specialised Food Packaging 120 044 106 537 12,7 248 909

4 616 876 4 414 800 4,6 9 659 597

Operating profit (EBIT)Perishables 142 444 137 810 3,4 338 942Ambient Groceries 129 359 64 514 100,5 222 081Snacks and Confectionery 26 597 30 221 (12,0) 58 723Baking and Baking Aids 28 896 25 893 11,6 64 731Niche Beverages 219 2 559 (91,4) 6 918Household and Personal Care (2 642) 489 (640,4) 5 492Specialised Food Packaging 1 470 2 399 (38,7) 10 402Corporate (55 775) (34 925) (59,7) (85 770)

270 568 228 960 18,2 621 519

Reconciliation of operating profit per segment to profit before taxOperating profit 270 568 228 960 18,2 621 519Investment income 25 219 21 027 19,9 47 617Finance costs (128 158) (153 052) (16,3) (269 310)

Profit before tax 167 629 96 935 72,9 399 826

The chief operating decision maker reviews the revenue and operating profit on a regular basis. The chief operating decision maker does not evaluate any of the Group's assets or liabilities on a segmental basis for decision making purposes.

* Comparative figures have been reclassified to show the tea operations within the ambient groceries segment.

6 months ended

30 June 2019

R'000

6 months ended

30 June 2018

R'000Change

%


2018R'000

Normalised EBIT and EBITDAGROUP - CONTINUING OPERATIONSOperating profit 270 568 228 960 18,2 621 519Amortisation of customer contracts and brands 75 086 70 420 140 841Due diligence costs 264 738 3 319Expenses relating to share appreciation rights granted - (21 677) (13 208)Government grants - - (46)Impairment losses on goodwill, customer relationships and brands - - 556(Gain)/loss on disposal of property, plant and equipment (320) 1 399 3 190Costs and fees attributable to the Initial Public Offering - 7 303 5 007Retrenchment and settlement costs 4 545 1 459 7 050Securities transfer tax 221 - 66Straight lining of operating leases - 2 181 3 694Strategic advisory fees - 77 43Unrealised loss/(gain) on foreign exchange 787 32 173 45 494Donations - - 6 000

Normalised EBIT 351 151 323 033 8,7 823 525Amortisation of software 3 560 2 816 8 017Depreciation of property, plant and equipment 128 146 75 472 152 914

Normalised EBITDA 482 857 401 321 20,3 984 456Impact of IFRS 16 (57 951) - -

Normalised EBITDA excluding adoption of IFRS 16 424 906 401 321 5,9 984 456

PERISHABLESOperating profit 142 444 137 810 3,4 338 942Amortisation of customer contracts 24 496 22 338 44 676Due diligence costs - 81 -Loss on disposal of non-current assets held for sale - - 243(Gain)/loss on disposal of property, plant and equipment (68) (177) 365Retrenchment and settlement costs 1 861 747 2 024Straight lining of operating leases - 1 765 3 530Strategic advisory fees - 3 -Unrealised loss/(gain) on foreign exchange 543 (619) 5 455

Normalised EBIT 169 276 161 948 4,5 395 236Amortisation of software 740 293 306Depreciation of property, plant and equipment 45 177 27 147 59 109



6 months ended

30 June 2019

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6 months ended

30 June 2018

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%


2018R'000

AMBIENT GROCERIESOperating profit 129 359 64 513 100,5 222 081Amortisation of customer contracts 31 547 31 781 63 561Loss on disposal of non-current assets held for sale - - 313(Gain)/loss on disposal of property, plant and equipment (208) 1 781 2 324Retrenchment and settlement costs 78 491 2 201Straight lining of operating leases - (79) 257Unrealised (gain)/loss on foreign exchange (332) 35 043 39 881

Normalised EBIT 160 444 133 529 20,2 330 618Amortisation of software 1 247 453 4 372Depreciation of property, plant and equipment 38 004 23 651 44 945



SNACKS AND CONFECTIONERYOperating profit 26 597 30 221 (12,0) 58 723Amortisation of customer contracts 2 201 2 201 4 402(Gain)/loss on disposal of property, plant and equipment (48) 24 44Retrenchment and settlement costs 447 - -Straight lining of operating leases - - (112)Strategic advisory fees - 74 -Unrealised loss/(gain) on foreign exchange 739 (2 353) (116)

Normalised EBIT 29 936 30 168 (0,8) 62 941Amortisation of software 488 365 809Depreciation of property, plant and equipment 6 907 4 444 9 301



BAKING AND BAKING AIDSOperating profit 28 896 25 893 11,6 64 731Amortisation of customer contracts 3 435 4 703 9 406Loss on disposal of property, plant and equipment - - 59Retrenchment and settlement costs - 117 280Straight lining of operating leases - (51) (666)Unrealised (gain)/loss on foreign exchange (137) (67) 258

Normalised EBIT 32 194 30 594 5,2 74 067Amortisation of software 421 397 794Depreciation of property, plant and equipment 17 175 8 766 17 774



SPECIALISED FOOD PACKAGINGOperating profit 1 470 2 399 (38,7) 10 402Amortisation of customer contracts 1 133 1 133 2 267Government grants - - (46)Loss/(gain) on disposal of property, plant and equipment 5 (45) (65)Unrealised (gain)/loss on foreign exchange (26) 9 23

Normalised EBIT 2 582 3 496 (26,1) 12 581Amortisation of software 50 54 108Depreciation of property, plant and equipment 1 135 588 1 225

Normalised EBITDA 3 767 4 139 (9,0) 13 914Impact of IFRS 16 (300) - -

Normalised EBITDA excluding adoption of IFRS 16 3 467 4 139 (16,2) 13 914

HOUSEHOLD AND PERSONAL CAREOperating profit (2 642) 489 (640,4) 5 492Amortisation of customer contracts and brands 12 025 6 092 12 183(Gain)/loss on disposal of property, plant and equipment - (192) 407Retrenchment and settlement costs 2 159 - 1 946Straight lining of operating leases - 546 685Strategic advisory fees - - 42Unrealised loss/(gain) on foreign exchange - 160 (8)

Normalised EBIT 11 542 7 095 62,7 20 748Amortisation of software 12 - (569)Depreciation of property, plant and equipment 13 706 8 827 16 179



NICHE BEVERAGESOperating profit 219 2 559 (91,4) 6 918Amortisation of customer contracts 249 2 172 4 345(Gain)/loss on disposal of property, plant and equipment (1) (18) 17Retrenchment and settlement costs - 105 105

Normalised EBIT 467 4 818 (90,3) 11 384Amortisation of software - - 5Depreciation of property, plant and equipment 3 620 1 229 2 669

Normalised EBITDA 4 087 6 047 (32,4) 14 058Impact of IFRS 16 (2 855) - -

Normalised EBITDA excluding adoption of IFRS 16 1 232 6 047 (79,6) 14 058

6 months ended

30 June 2019

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6 months ended

30 June 2018

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%


2018R'000

CORPORATEOperating profit (55 775) (34 925) (59,7) (85 770)Due diligence costs 264 656 3 319Expenses relating to share appreciation rights granted - (21 677) (13 208)Loss on disposal of property, plant and equipment - 28 40Costs and fees attributable to the Initial Public Offering - 7 303 5 007Retrenchment and settlement costs - - 494Securities transfer tax 221 - 66Donation - - 6 000

Normalised EBIT (55 290) (48 615) (13,7) (84 052)Amortisation of software 603 1 253 2 193Depreciation of property, plant and equipment 2 421 820 1 712

Normalised EBITDA (52 266) (46 542) (12,3) (80 147)Impact of IFRS 16 (1 748) - -

Normalised EBITDA excluding adoption of IFRS 16 (54 014) (46 542) (16,1) (80 147)

Export revenueThe Group mainly operates in South Africa. Revenue derived from customers domiciled within South Africa is classified as revenue from South Africa. Revenue from customers domiciled outside of South Africa is classified as export revenue.

Export revenue for the year 568 583 584 560 (2,7) 1 270 480

Major customersDuring the period under review, revenue from certain customers exceeded 10% of total revenue.Customer A 19% 19% 18%Customer B 16% 14% 14%Customer C 11% 12% 11%

Notes to the Reviewed Condensed Consolidated Financial Statements

1. Reporting entity

Libstar is a leading producer and supplier of high quality products in the CPG industry and sells a wide range of products in South Africa and globally. The Group provides a multi-product offering in multiple categories across multiple channels, while strategically positioning itself within the food and beverage and HPC sectors.

The Group currently operates across a number of business units, each of which has its own infrastructure, employees and products. The Group operates a decentralised business model, with each business unit being responsible for its own procurement, production, distribution and logistics, sales and marketing and customer relationships. Libstar demonstrates a strong management drive and provides a platform for these business units to grow through provision of working capital and investment in infrastructure that builds manufacturing capability and capacity.

2. Basis of accounting

These reviewed condensed consolidated interim financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS), including disclosure requirements of IAS 34 Interim Financial Reporting Standard and comply with the Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the SAICA Financial Reporting Standards Council, as well as the JSE Listings Requirements and the Companies Act, No 71 of 2008.

This is the first set of the condensed consolidated Group's financial statements in which IFRS 16 (Leases) and hedge accounting have been applied. Changes to significant accounting policies are described in Note 3.

These condensed consolidated interim financial statements have been reviewed in terms of the Companies Act, No 71 of 2008. These condensed consolidated interim financial statements have been prepared by P Makate CA(SA) under the supervision of CB de Villiers CA(SA) and R Smith CA(SA) .

The financial results presented have been reviewed by the Group's independent external auditors, Moore Stephens, who expressed an unmodified review conclusion. A copy of the auditor's review report is available for inspection at the Company's registered office.

The auditor's report does not necessarily report on all of the information contained in this announcement. Shareholders are therefore advised that in order to obtain full understanding of the nature of the auditor's engagement they should obtain a copy of that report together with the accompanying financial information from the Company's registered office.

3. Accounting policies

The accounting policies applied by the Group in these reviewed condensed consolidated interim financial statements are consistent with those applied in the consolidated annual financial statements for the year ended 31 December 2018 with the exception of the adoption of the following accounting standards:

- IFRS 16 - Leases (effective from 1 January 2019).- IFRS 9 - Financial Instruments (the group has implemented hedge accounting for the first time from 1 January 2019).

3.1 Leases

The Group has applied IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 01 January 2019. Accordingly, the comparative information presented for financial year 2018 has not been changed. IFRS 16 introduced a single, on-balance sheet accounting model for lessees. As a result, the Group, as a lessee, has recognised a right-of-use asset representing its right to use the underlying assets and lease liabilities representing its obligation to make lease payments.

The Group previously classified leases as operating or financing leases based on its assessment of whether the lease transferred substantially all of the risks and rewards of ownership. Under IFRS 16, the Group recognises right-of-use asset and lease liabilities for most leases.

The Group has elected not to recognise right-of-use asset and lease liabilities for some leases of low-value assets. The Group recognise the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

3.2 Hedge accounting

The Group has applied hedge accounting to all forward and swap contracts entered into from 01 January 2019.

The Group hedges the majority of its foreign currency exposures. Import-related exposures are hedged to the value of 6 to 9 months' forecast imports and export-related exposures are hedged to the value of 9 to 12 months' forecast exports, or within 48 hours of receipt of a firm order, whichever date is earlier. Hedging instruments are limited to standard foreign exchange contract (FEC's) only.

A foreign currency transaction is recognised, on initial recognition in South African Rands, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

At the end of the reporting period, the foreign currency monetary items are translated using the closing rate of exchange.

Derivative financial instruments are initially and subsequently recognised at fair value, with changes in fair value being included in profit or loss other than derivatives designated as cash flow hedges.

The Group designates certain derivatives as cash flow hedges. If these cash flow hedges meet the conditions for hedge accounting, the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other comprehensive income and the ineffective portion is recognised in profit or loss. A hedge of the foreign currency risk of a firm commitment is designated and accounted for as a cash flow hedge.

Amounts deferred to the hedging reserves are recognised through profit and loss in the same period in which the hedged item affects profit and loss. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. At that time, for forecast transactions, any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the forecasted transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is transferred to profit or loss for the period.

4. Accounting judgements and estimates

Management is required to make estimates and assumptions that affect the amounts presented in the financial statements and related disclosures. The use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated annual financial statements for the year ended 31 December 2018.

6 months ended

30 June 2019

ReviewedR'000

6 months ended

30 June 2018

ReviewedR'000


2018

AuditedR'000

5. Other incomeBad debts recovered 51 13 23Commissions received 19 16 35Gain on disposal of property, plant and equipment 320 - -Gain on foreign exchange 8 728 2 851 10 337

Realised gain on foreign exchange 9 515 35 024 55 831 Unrealised loss on foreign exchange (787) (32 173) (45 494)

Insurance claims received 194 159 2 020Sundry income 4 943 3 590 5 580

14 255 6 629 17 995

6. Operating profitOperating profit from continuing operations is calculated after taking into account the following:

Operating expenditureDepreciation of property, plant and equipment 82 271 76 017 152 915Depreciation of right-of-use assets 45 874 - -Amortisation of computer software and brands 3 560 2 842 8 017Amortisation of customer relationships 75 086 70 784 140 841Loss on disposal of property, plant and equipment - 1 383 3 190Employee benefits 615 220 560 810 1 092 185

Salaries and wages 610 675 559 351 1 085 963 Retrenchment and settlement costs 4 545 1 459 6 222

Strategic advisory fees - 78 43Due diligence costs 264 738 8 326Charges relating to/(reversal of) share appreciation rights granted - (21 677) 13 203Securities transfer tax - - 66Operating lease charges - 38 240 140 451

Premises - 30 812 110 364 Straight-lining of operating leases - 2 181 3 694 Motor vehicles & equipment - 5 247 26 393

6 months ended

30 June 2019

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30 June 2018

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2018R'000

7. Loss from discontinued operations and operations held for saleLoss from discontinued operations/operations held for sale (65 807) (9 760) (50 906)

Loss from discontinued operations recognised in the Statement of Profit or Loss and Other Comprehensive Income consists of the following:

7.1 Current year loss from operations held for sale - ElvinThe Group has entered into a sale of business agreement in respect of the dairy blend and fruit concentrate beverages. The agreement is subject to customary conditions precedent including approval by The Competition Commission of South Africa. The transaction is not categorised in terms of the JSE Listings Requirements.

The results of the lines classified as a held for sale included in the Condensed Consolidated Statement of Comprehensive Income are set out below:

Revenue 122 455 113 938 232 698 Cost of sales (112 210) (93 461) (199 870)

Gross profit 10 245 20 477 32 828 Other income 55 423 545 Operating expenses (87 909) (26 371) (79 894)

Operating loss (77 609) (5 471) (46 521) Investment income - - 58 Finance costs (1 581) (1 440) (3 580)

Loss before tax (79 190) (6 911) (50 043) Income tax 13 383 - 11 760

Loss for the period from operations held for sale (65 807) (6 911) (38 283)

Loss from discontinued operation attributable to: Equity holders of the parent (65 807) (6 911) (38 283) Non-controlling interest - - -

(65 807) (6 911) (38 283)

7.2 Prior year loss from discontinued operations - Pasta NovaDuring the previous financial year, the Group resolved to discontinue the operations of Pasta Nova - a division of Libstar Operations Proprietary Limited.The Pasta Nova operation was classified as a discontinued operation and the divisions results included in the Condensed Consolidated Statement of Comprehensive income are set out below:Revenue - 15 746 26 000Cost of sales - (12 318) (21 028)

Gross profit - 3 428 4 972Other income - 35 91Operating expenses - (6 189) (19 202)

Operating loss - (2 726) (14 139)Finance costs - (123) (409)

Loss before tax - (2 849) (14 548)Income tax - - 1 925

Loss for the period from discontinued operation - (2 849) (12 623)

Loss from discontinued operation attributable to: Equity holders of the parent - (2 849) (12 623) Non-controlling interest - - -

- (2 849) (12 623)

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30 June 2018

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2018R'000

8 Earnings per share

8.1 Basic and diluted earnings per shareThe earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:Earnings used in the calculation of basic earnings per share 52 232 63 820 222 224

From continuing operations 118 039 73 580 273 130From discontinued operations (65 807) (9 760) (50 906)

Weighted average number of ordinary shares for the purposes of basic earnings per share ('000) 599 255 523 347 566 445

Basic earnings per share in cents

From continuing operations 19,7 14,1 48,2From discontinued operations (11,0) (1,9) (9,0)

From continuing and discontinued operations 8,7 12,2 39,2

8.2 Normalised earnings per shareTo arrive at normalised EPS, the after-tax earnings from continuing operations is adjusted for the after-tax impact of the following:

Profit for the year from continuing operations 118 039 73 580 273 130normalised for: 58 386 69 260 146 775

Amortisation of customer contracts and brands 54 062 50 964 101 406 Due diligence costs 264 738 3 319 Provision for share appreciation rights - (15 608) (9 510) Government grants - - (46) IPO costs - 7 303 5 007 Retrenchment costs 3 273 1 051 5 076 Securities transfer tax 221 - 66 Straight lining of operating leases - 1 570 2 659 Strategic advisory fees - 77 43 Donation - - 6 000 Unrealised forex losses 566 23 165 32 755

Normalised earnings used in the calculation of basic earnings per share 176 425 142 840 419 905

Weighted average number of ordinary shares for the purposes of basic earnings per share ('000) 599 255 523 347 566 445

Normalised basic earnings per share in cents 29,4 27,3 74,1

8.3 Diluted earnings per share

There are no convertible shares, share options, warrants or any other instruments in issue that have a potential dilutive effect on the earnings per share.

Gross Net

8.4 Headline earnings per shareHeadline earnings is calculated based on HEPS Circular 4 of 2018 - Headline Earnings issued by the South African Institute of Chartered Accountants.

The headline earnings used in the calculation of headline earnings per share are as follows:

Six months ended 30 June 2019Basic earnings from continuing operations 118 039 118 039Adjustments (320) (248)

Profit on disposal of property, plant and equipment (320) (248)

Headline earnings from continuing operations 117 719 117 791

Six months ended 30 June 2018Basic earnings from continuing operations 73 580 73 580Adjustments 1 383 1 073

Loss on disposal of property, plant and equipment 1 383 1 073


Year ended 31 December 2018Basic earnings from continuing operations 273 130 273 130Adjustments 3 190 2 475

Loss on disposal of property, plant and equipment 3 190 2 475


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30 June 2018

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2018R'000

8. Earnings per share continued8.4 Headline earnings per share continued

Basic earnings from discontinued operations (65 807) (9 760) (50 906)Adjustments (net of tax) 59 412 - 35 304

Impairment of brands 34 412 - 30 240 Impairment of goodwill 25 000 - - Loss on disposal of property, plant and equipment and customer contracts - - 5 064

Headline earnings from discontinued operations (6 395) (9 760) (15 602)

Headline earnings from continuing and discontinued operations 111 396 64 893 260 003

Headline earnings per share in cents

From continuing operations 19,7 14,3 48,7From discontinued operations (1,1) (1,9) (2,8)

From continuing and discontinued operations 18,6 12,4 45,9

8.5 Normalised headline earnings per share

To arrive at normalised HEPS, the normalised EPS is adjusted for the after-tax impact of the below:

NetSix months ended 30 June 2019Normalised basic earnings from continuing operations 176 425Adjustments (248)

Profit on disposal of property, plant and equipment (248)

Normalised headline earnings from continuing operations 176 177

Normalised headline earnings per share from continuing operations (cents) 29,4

Six months ended 30 June 2018Normalised basic earnings from continuing operations 142 840Adjustments 1 073

Loss on disposal of property, plant and equipment 1 073



Year ended 31 December 2018Normalised basic earnings from continuing operations 419 905Adjustments 2 475

Loss on disposal of property, plant and equipment 2 475



9. Property, plant and equipment

During the six-month period ended 30 June 2019, the Group acquired plant, equipment and computer software in the amount of R162 million (2018: R152 million).

There has been no major change in the nature of property, plant and equipment, the policy regarding the use thereof, or the encumbrances over the property, plant and equipment as disclosed in the audited financial statements for the year ended 31 December 2018.

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30 June 2019

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30 June 2018

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2018R'000

10 LeasesNon-current right-of-use asset 464 430 - -Non-current lease liabilities (515 904) - -Current lease liabilities (38 976) - -

The Group has applied IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 01 January 2019. Accordingly, the comparative information presented for financial year 2018 has not been changed.

The impact of the adoption of IFRS 16 (Leases) on the consolidated financial statements of the Group is as follows:

Consolidated Statement of Comprehensive IncomeReduction of lease rental expense 57 951 - -Depreciation of right-of-use asset (45 874) - -Finance costs in respect of lease liability (24 601) - -

Reduction in profit before tax (12 524) - -

Consolidated Statement of Financial PositionRight-of-use assetRight-of-use asset recognised on 01 January 2019 510 304 - -Depreciation for the period (45 874) - -

Increase in assets 464 430 - -

EquityRetrospective adjustment to opening retained earnings at 01 January 2019 (50 560) - -Movement for the period (9 017) - -

Decrease in retained earnings (59 577) - -

Deferred tax assetRetrospective adjustment to deferred tax asset at 01 January 2019 19 662 - -Movement for the period 3 507 - -

Increase in deferred tax asset 23 169 - -

Finance Lease LiabilityLease liability recognised as at 01 January 2019 588 230 - -Add: finance costs 24 601 - -Less: lease payments (57 951) - -

Increase in financial liabilities 554 880 - -

11. Financial instruments

At the reporting dates, the financial assets and liabilities of the Group that are classified at fair value through profit and loss comprise forward exchange contracts. These are classified at a Level 2 in terms of the fair value hierarchy.

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30 June 2018

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2018R'000

12. Cash generated from continuing operationsProfit before taxation from continuing operations 167 629 96 935 399 826Adjustments for: 239 141 301 283 568 391

Depreciation, amortisation and impairments 160 917 149 643 301 773 Depreciation of right-of-use assets 45 874 - - Loss/(gain) on disposal of property, plant and equipment (320) 1 383 3 190 Lease payments (57 951) - - Investment income (25 219) (21 027) (47 617) Finance costs 128 158 153 052 269 310 Fair value adjustment on forward exchange contracts (11 398) 36 794 47 257 Foreign exchange losses 12 156 - - Movements in employee benefits (231) (175) 547 Movements in operating lease assets and accruals - 3 290 7 139 Movements in share appreciation rights (12 845) (21 677) (13 208)

Changes in working capital: (96 601) (86 385) (92 030)

Inventories (90 518) (54 517) 15 777 Trade and other receivables 70 213 126 781 (9 930) Biological assets (973) (828) (500) Trade and other payables (75 323) (157 821) (97 377)

310 169 311 833 876 187

13. Subsequent events The following events occurred during the period subsequent to 30 June 2019 but prior to the date of issue of this announcement: - The Board appointed Mr Sandeep Khanna as chairman of the Remuneration Committee with effect from 03 September 2019 - The Board appointed Mr JP Landman as a member of the Remuneration Committee with effect from 03 September 2019.

Date of publication04 September 2019

Corporate information

Address

1st Floor, 62 Hume Road, Dunkeld, Johannesburg, 2196, South Africa(PO Box 630, Northlands, 2116)

Website

www.libstar.co.za

Directors

Wendy Luhabe (Chairman)JP Landman (Lead-independent)Sandeep KhannaSibongile MasingaAndries van Rensburg (CEO)Robin Smith (CFO)

Company Secretary

Solach Pather1st Floor, 62 Hume Road, Dunkeld, Johannesburg, 2196, South Africa(PO Box 630, Northlands, 2116)

Sponsor

The Standard Bank of South Africa Limited30 Baker Street, Rosebank, Johannesburg, 2196, South Africa(PO Box 61344, Marshalltown, 2107)

Auditors

Moore Stephens Cape Town IncBlock 2, Northgate Park, Corner Section Street and Koeberg Road, Paarden Eiland, Cape Town, 7405, South Africa(PO Box 1955 Cape Town, 8000)

Transfer secretaries

Computershare Investor Services Proprietary LimitedRosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196, South Africa(PO Box 61051, Marshalltown, Johannesburg, 2107)

libstar holdings limited (incorporated in the republic of south africa… · 2019. 9. 4. ·...

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